What Global MSMEs Need to Prevent Climate Change

A survey by the SME Climate Hub, funded by its parent organization, the We Mean Business Coalition, reveals five key needs of global SMEs in taking greater climate action by 2025.

In its report, Mobilizing Small Businesses to Net Zero, government incentives were cited as the most crucial aspect, with 64% of respondents highlighting this need. These incentives could include tax breaks, low-interest loans, or technical assistance programs.

SMEs also require tools to measure and monitor emissions for a more impactful environmental approach (55%). Other needs include consistent reporting processes and resources for learning about emission reduction.

Here are the five key needs of global SMEs in taking climate action:

• Government incentives: 64%
• Tools to measure and monitor emissions: 55%
• Consistent reporting processes across customers and governments: 41%
• Industry-specific guidance or solutions: 41%
• Resources to learn how to reduce emissions: 39%

"As an organization, we initially lagged in our efforts to contribute to environmental conservation. Our first step was to form a dedicated team and equip them with the necessary knowledge and skills to drive this change," said Stefan Langer Saavedra, CEO of GMPI Industrial, as quoted in the SME Climate Hub report on Monday, June 2, 2025.

Main Obstacles

In addition to their needs, global SMEs face three major obstacles that could hinder their climate action. In 2025, their main obstacles were:

• The belief that customers are unwilling to pay for more sustainable products: 42%
• Inadequate funding or access to financing: 41%
• Lack of supportive policies or government incentives: 41%

Compared to 2024, there has been a shift in the obstacles faced by SMEs in taking climate action. In 2024, the three main obstacles were:

• Lack of government-supported policies or benefits that facilitate climate action: 51%
• Inadequate funding: 50%
• Lack of emissions data: 36%

“As a tour operator in South Africa, one of the challenges we face is the limited public transport infrastructure. Nevertheless, we are actively designing itineraries to minimize carbon emissions—encouraging guests to explore destinations on foot and by bicycle, and using public transport where possible,” said Charlene Becker, Founder of Pinpoint Tours.

For information, the SME Climate Hub survey involved 471 SMEs in 53 countries across 25 industries. The organization defines SMEs as businesses with fewer than 500 employees.